The APR Matching tool lets you choose an APR amount and then adjust either the loan interest rate or the total escrow amount in order to get the loan as close to the chosen APR as possible without going over. This is especially useful for complying with laws that require an APR to be under a certain threshold, like SCRA.

Keep in mind that this is an iterative process. The system rapidly guesses and checks different options until it zeroes in on the exact APR you're looking for. This means that it's running one calculation after another, so it can take a few seconds to calculate.

Using APR Match

The APR Matching tool is accessed within an individual loan. In LMS, use the to select a loan, then select Account Setup > Setup Terms. The APR Match tool is only available on inactive loans. (If a loan has already been activated, you'd have to inactivate it before using the APR Match tool.)

In the Summary section, click the TIL Tools drop-down and select APR Match. This opens up a dialogue window with two fields: Desired APR and Solve With.

'Desired APR' is pretty self-explanatory. The 'Solve With' drop down lets you choose whether to solve using an interest rate or escrow amount. If you don’t have any escrow buckets with the “Include in APR” setting set to “Yes” for this loan, no escrow buckets will appear in the drop-down. Enter your target APR into the “Desired APR” field. Click 'APR Match' to solve for your desired APR.